LAM RESEARCH CORP (NASDAQ:LRCX) Screened as a High-Growth Momentum Stock

LAM RESEARCH CORP (NASDAQ:LRCX) has been found using a screening process that joins Mark Minervini's strict Trend Template with a High Growth Momentum rating. This two-part method looks for securities showing both solid technical momentum and strong fundamental growth features, trying to find stocks set for possible better performance. The system focuses on stocks already in clear uptrends while making sure they are backed by quickening earnings and sales growth, a pairing Minervini's SEPA (Specific Entry Point Analysis) strategy points to as important for high performance.

Meeting the Minervini Trend Template

The Minervini Trend Template is a group of fixed technical rules made to find stocks in a solid Stage 2 uptrend. LAM RESEARCH CORP currently meets the main parts of this template, indicating a technically sound and firm stock.

• Price Above Key Moving Averages: The present price is above the increasing 50-day, 150-day, and 200-day simple moving averages. This order confirms the stock is in a maintained uptrend across short, medium, and long-term periods.
• Moving Average Alignment: The 50-day SMA ($145.43) is higher than both the 150-day SMA ($110.80) and the 200-day SMA ($101.79), and the 150-day SMA is also higher than the 200-day SMA. This layered, increasing formation is a standard sign of firm positive momentum and buyer command.
• Proximity to 52-Week High: The stock is priced within 10% of its 52-week high of $167.15, which is inside the Template's rule of being within 25%. This shows firmness and a habit of guiding instead of following the market.
• Significant Gain from Low: The present price is more than 169% over its 52-week low of $56.32, well past the 30% minimum level. This points to a strong recovery and set positive trend.
• Superior Relative Strength: With a ChartMill Relative Strength rating of 96.27, LRCX is doing better than 96% of all stocks in the market. High relative strength is a key part of the Minervini method, as it finds market front-runners that often do better during positive market phases.

Qualifying as a High-Growth Candidate

Beyond a technically good chart, the Minervini strategy needs firm fundamental bases. LAM RESEARCH CORP shows the high-growth features that can support continued price increases.

• Impressive Earnings Growth: The company has reported outstanding earnings growth, with EPS for the trailing twelve months (TTM) increasing by 41.65% year-over-year. Recent three-month performance is even more solid, with the last quarter displaying a 46.51% rise compared to the same quarter last year.
• Accelerating Revenue Growth: Top-line growth is similarly strong. Revenue for the TTM period increased by 25.66%, and the newest quarter had sales grow by 27.74% year-over-year. This points to firm demand and market share improvements.
• Positive Analyst Revisions: The average analyst estimate for next year's EPS has been adjusted higher by 8.52% over the past three months. Higher adjustments are an important Minervini screen, as they often come before more institutional buying and price momentum.
• Consistent Earnings Performance: The company has surpassed EPS estimates in all of the past four quarters, with an average beat of almost 3%. This regularity in beating estimates strengthens investor trust.
• Strong and Improving Profitability: The company keeps very good profit margins, with the last quarter at 29.46%. This shows effective operations and pricing strength in the semiconductor equipment field.

Technical Health and Setup Summary

The technical analysis report for LAM RESEARCH CORP gives a full picture of its current status. The stock gets a high technical rating of 9 out of 10, reflecting its steady long-term performance and firm trend features. While the short-term trend is currently neutral as the stock settles its recent gains, the long-term trend stays clearly positive.

The report also mentions a good setup rating of 7, indicating the stock is making a consolidation shape inside its wider uptrend. A main support area is found between $138.42 and $142.64, giving a possible zone for a sensible stop-loss order. Also, the report notes a recent "Pocket Pivot" signal, a positive sign that often means accumulation by institutional investors.

For a detailed look at the technical analysis, including support and resistance points, you can see the full report here.

A Candidate for Further Analysis

LAM RESEARCH CORP makes a strong case for investors using a high-growth momentum strategy. It successfully meets the strict technical screens of the Minervini Trend Template, confirming it is in a firm uptrend, while its fundamental profile shows quickening earnings and revenue growth that can possibly maintain that momentum.

For investors looking for other chances that match this particular strategy, the screening process that found LRCX can be repeated. You can find more stocks that fit the joined rules of the Minervini Trend Template and a High Growth Momentum rating by using this pre-configured screen.

Disclaimer: This analysis is for informational and educational purposes only and is not intended as investment advice. The provided examples and screens are not recommendations to buy or sell any security. All investments involve risk, and you should conduct your own research and consult with a qualified financial advisor before making any investment decisions. Please read our full disclaimer here.